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Friday, January 11, 2013

Daily update 1/11

That was an exciting day, LOL.  Here is the daily SPX chart.

That looks like a hanging man doji candle.   We opened flat and never made it up to the Sept. high.  Lets look at the SPY daily chart tonight.

There is a combination of a hanging man yesterday and a doji bar today.  The doji bar is also a hanging man as well.  This combination has been named the Shanghai Duo (thanks for the reminder Herm).  This is not a real well known combination, but can be an important top or bottom pattern.  With an extremely overbought market it might mean it is time for a pullback.  A close below today's low should be confirmation a move down has started. 

We are at an important juncture here.  A retest of the Sept. high with very bullish sentiment could be a recipe for a bigger pullback then many expect.  This really looks and feels like an important top to me.  I guess we will see.  Maybe I am just crazy, LOL.

Chart practice has been updated with QQQ the stock for today.


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